Exhibit 39-2

-Refer to Exhibit 39-2.Given a target price of P?,what is the total deficiency payment made by the government?
A) (P1 - P2) x Q2
B) (P1 - P0) x Q2
C) P1 x Q1
D) P0 x Q0

Question

Exhibit 39-2
 
-Refer to Exhibit 39-2.Given a target price of P?,what is the total deficiency payment made by the government?
A) (P1 - P2) x Q2 
B) (P1 - P0) x Q2 
C) P1 x Q1 
D) P0 x Q0

Quizplus · Accepted Answer

The total deficiency payment is calculated as the difference between the target price (P1) and the market price (P2) multiplied by the quantity produced (Q2).

Exhibit 39-2 -Refer to Exhibit 39-2.Given a Target Price of P?,what Is